AUD/USD: will the cloud withstand the bears?
Tatiana Norkina, FBS analyst
Australian currency showed its weakness yesterday not holding above 0.8200 figure.The market consolidated in a four Tenkan-sen during the day but the bears turned out to be stronger and depreciated the currency pair to the upper boundary of the cloud, in the area of 0.8170 this morning.
It should be noted that the Tenkan and Kijun lines abolished the gold cross effect and the oscillators turned down, which can become a sign not only of a short-term reversal but of a longer-term trend, which is now defined by bullish cloud. Therefore, we do not exclude the probability of the cloud’s support breakthrough down.
If there happens further consolidation above the cloud, we’d expect resumption of the main trend.
Technical levels: support - 0.8160; resistance - 0.8200.
1. Buy - 0.8210; SL - 0.8190; TP1 - 0.8310; TP2 - 0.8350.
2. Sell - 0.8150; SL - 0.8170; TP1 - 0.8090; TP2 - 0.8050.